According to “Reuters,” the OPEC Plus pact, which brings together independent producers like Russia and the Organization of the Petroleum Exporting Countries (OPEC), will put pressure on supplies in a market already experiencing a supply crunch.
Saudi Arabia claimed that the production reductions, which account for around 2% of the world’s supply, were brought on by increased interest rates in the West and a faltering global economy.
A shift in the cost
The price of Brent crude futures increased by 8 cents, or 0.
By 0530 GMT, a barrel had increased by 1% to $93. 45.
With gains of roughly 2 US cents, West Texas Intermediate oil futures finished at $87.78 per barrel.
American reaction
The pact was denounced by US President Joe Biden’s administration as being “short-sighted.”
In an apparent allusion to legislation that may subject group members to antitrust litigation, the White House announced that it would consult Congress on other ways to restrict OPEC + control of energy prices.
Separately, Alexander Novak, the deputy prime minister of Russia, suggested on Wednesday that Russia may lower oil production in an effort to counter the effects of the West capping Russian energy prices as a result of the Ukraine situation.
According to the US Energy Information Administration, the week-over-week drop in US oil stockpiles helped to sustain prices.
In the week ending September 30, inventories decreased by 1. 4 million barrels to 429. 2 million barrels.
Following the OPEC+ decision and the dismal US data, Brent is approaching $ 94.
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